Regional Boutique IB vs FLDP
Regional Boutique IB or FLDP
What is a better first job out of college? Regional Boutique IB or a FLDP at a F500? The RB pay is somewhat lower around 60k. I am unsure what I want to do in finance so I’m wondering what’s better for a career path to figure it out. Cheers!
Describe the boutique, what’s the average EV of companies it works with, is it mostly buy side/sell side/equity/debt, what have juniors gone on to afterwards, how many employees/offices?
The fact that pay is so low is not a good sign.
Sellside, about 35, I'm guessing between 15-200M, some employees move up to MM firms and only 1 office
How are senior banker pedigrees? Are they mostly from reputable firms?
Depends what you're interested in as the roles are very different but the pay for the bank sounds very low. FLDP is a great program out of college to put you on a corporate track for large business. Jobs are quite different so would think about what your medium-term goals are.
Not sure what I want to do, really end of day I'm concerned about pay/WLB and best ways to keep options open if i want to switch to something else
You’ve already done IB internships according to your other posts, and from those jobs, you’ve concluded that you don’t want to do IB as a career, which is completely fine. Working 70-80 hour weeks at a regional boutique making $60K a year is not going to make you want to do IB any more either unless your prior teams were so horrible that they weren’t a valid sample.
I think this sounds like a slam dunk for the FLDP. You make more money in the near-term and are better positioned for a job with great pay and fewer hours than IB. FLDPs tend to be rotational as well, so you’ll likely get to see different parts of the organization and figure out what you like, which I sense you may still be discovering these things based on your realization about IB. I would tell you to accept the FLDP, rotate around, and find what is going to fuel you for a meaningful career.
Yeah during my internships it was during school so never got a true taste of the SA stuff. I just don’t want to pigeon hole myself
Excellent input. From your description (have not read the other threads), it sounds like the OP is experiencing some conceptual FOMO regarding IB. It's not for everyone. In fact I'd offer it's not for most. If you already know it's not your cup of tea, move on to something else. That's actually a huge benefit of an internship. Yes you can use it to secure an offer. But also to rule an industry / career track in or out. If it's not for you, it's not for you.
Don't compare yourself with others or take a role because it's been drilled in your head that you must be IB or bust. This will be your first job out of college. Believe it or not, first jobs are not career defining. The typical FLDP has 3 or 4 rotations. You'll probably hate one or two and like the others. Can be a great way to learn how large companies work and how finance can drive the business. You can move in many directions from there either internally or externally (other companies, consulting - MC, RX).
Lots of options. Just be honest with yourself. Nobody matters.
Appreciate it. Both In internships were while I had classes so I never got the traditional Summer Analyst stint, so I don’t really know what the true feel of IB is, just the type of work, so that’s why I am uncertain
Is a move from a corporate finance role or FLDP to client service roles like consulting / RX possible? Thought exits would be similar finance functions at other corporates. Wanted to try corp fin after IB for better WLB but worried about limiting exits if I decide it is not for me.
Take the FLDP if it’s a decently reputable / large company. I started at a boutique IB and I deeply regretted that - no clear exit opps to better IBs, hellish hours, shitty pay, crap culture, low quality deal experience, low job stability, etc
Regional boutiques are really a hit or miss. I started at one and lateraled to a BB, then ran laps around my peers.
If it’s a good RB, you’ll get much more responsibilities and it’ll really be sink or swim - there is absolutely no room at all to hide any weaknesses. At BBs (and even some MMs), it’s entirely a political game and “performance” is more or less check the box kind of thing - even at the first year analyst level. You’ll also have a lot more resources (i.e. graphics team, print shop, India team, etc.) and will likely average fewer hours than a peer at a RB.
On the flip side, the market is shit right now and you likely won’t be able to lateral to a bigger name until ‘24/‘25. You’ll likely work longer hours executing/pitching less attractive deals and psychologically, it can be hard to justify the long-term investment. Idk if you want to lateral, exit to Industry or go to the buyside - if the latter, opportunities will likely be regional LMM PEs.
As far as compensation goes, numbers really aren’t comparable without getting more context on location. $125k base salary in NYC feels like $40k whereas $60K in a LCOL area can feel like $100k+. This will be a factor for you to calculate and decide on your own.
Can I pm you?
So it’s worth it not to do the RB and wait for a MM/BB opp? I’m graduating this spring so I need a job
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